Tuesday, April 12, 2011

KLCI down in early trade, Genting, PChem weigh

KUALA LUMPUR: The FBM KLCI fell in early trade on Tuesday, April 12 on some carry-over of selling from Monday, especially of Genting and heavyweight Petronas Chemicals while key regional markets fell, with Japan's Nikkei down 1.9%.

At 9.09am, the KLCI was down 10.51 points to 1,533.49. Turnover was 44.19 million shares valued at RM47.55 million. There were 80 gainers, 124 losers and 111 stocks unchanged.

BAT fell the most, down 98 sen to RM47.02 but with just 100 shares done.

Petronas Chemicals fell 14 sen to RM7.15, Genting 10 sen to RM11, Sime eight sen to RM9.18 and Genting Malaysia seven sen to RM3.67.

OSK Research said in its technical outlook that the FBM KLCI unexpectedly pulled back by 13.49 points on Monday and at one point even lost slightly more than 15 points at the day-low but expected the 1,530-level to provide good support, if it should be tested.

'Judging from the recent sharp run-up that started from above the critical low of 1,474, the retracement still looks healthy although the selling momentum was rather worrying. The magnitude of the selling pressure looked like it might further drag down the index in the coming sessions,' it said.

'We will see if the market can quickly recover some of yesterday's losses. Our view is that the market retracement would still be considered healthy as long as the index stays at above the 1,530 pt-level.

'This is because the recent breakout from this level wrote off the possibility of the market trending sideways between the 1,474-level and the 1,530 -level. The breakout from the 1,530-level had strengthened our bullish bias view,' it said.

OSK Research said it maintained its bullish view towards the near-term market. Immediate support is seen at the 1,531-1,536 area.

'The 1,530-level is expected to provide good support to the market should it be tested. Immediate resistance is situated at the 1,565 pt-level while the historic high of 1,577 would be the next formidable hurdle,' it said.

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